Financials Retest Support
02/03/2010 9:59 am EST
The banking sector ETF (KBE) and its financial sector counterpart (XLF) are still holding above key support and trying to turn higher. KBE looks the best as it bottomed in mid-December after testing key support in the $21 area. This also corresponds to the rising 200-day MA with key resistance in the $24-$24.50 area. XLF has been lagging KBE as it just recently retested the key support at $14 and a convincing close below this level would be negative. A breakout above the resistance at $15.40 would signal a resumption of the uptrend.